Were Fleet Planning Problems Responsible for the Collapse of Thai Air Carriers?A Preliminary Case Study of One-Two-Go Airlines

Abstract

The unprecedented growth of the Thai air transport sector that commenced in the early 2000s attracted at least 30 new air carriers into the country’s airline market. However, a substantial number of them went bankrupt even before the COVID-19 pandemic disrupted the world aviation industry. This study hypothesised that flawed fleet planning was behind the collapse of many carriers in Thailand. One-Two-Go Airlines, the “low-fare” carrier owned by Orient Thai Airlines, was used as a case study. The hypothesis was initially tested by evaluating whether the One-Two-Go fleet of aircraft was in line with the low-cost airline business model and aircraft selection principles commonly adopted by many low-cost carriers worldwide. The preliminary findings indicated that the way the airline planned, acquired, and managed its aircraft did not appear to be the key factor behind its collapse. Rather, a negative brand image derived from safety concerns after the crash of Flight 269 was a key factor causing the airline to cease operations